Tag: SOCIAL DISTANCING

The Ministry of Home Affairs, Government of India (“MHA”) has issued an updated order dated May 01, 2020 bearing No. 40-3/2020-DM-I(A) (“Order”) with the new guidelines on the measures to be taken by Ministries / Department of Government of India / States and State authorities for containing the spread of COVID-19. The Order and the new guidelines will come into effect from May 04, 2020 and will be valid for a period of two weeks i.e. till May 17, 2020.

Classification of Zones

As per the Order, the easing of the lockdown restrictions in the country will be applicable based on the risk profiling of the districts into red, orange and green zones (as defined in the Order and explained below).

A) Green zones: A green zone is a zone where there are no confirmed cases till date, or districts with no confirmed case in the last 21 days.

B) Red zones or hotspots: A red zone will be defined by Ministry of Health and Family Welfare, Government of India (“MHFW”) taking into account total number of active cases, doubling rate of confirmed cases, extent of testing and surveillance feedback.

C) Orange zones: all zone that are neither red zones nor green zones will be classified as orange zones.

The classification of the zones will be updated by the MHFW on a weekly basis. The Order specifically states that each State/Union Territory may classify additional districts as red or orange zones but cannot lower the classification of any district. In red zones and orange zones, containment zones will be demarcated by states and district administrations where strict lockdown restrictions will apply.

As per the Order, within containment zones, there will be strict perimeter control and no movement of population in and out of containment zones, will be permitted except for medical emergencies and for the supply of essential goods and services. The Order requires 100% implementation of the Aarogya Setu application in containment zones.

Common Central Restrictions

Irrespective of the zone, as per the Order, the following activities continue to be prohibited:

• All domestic and international air travel except for medical or security purposes;
  
  
• Passenger movement by trains except security purposes or as permitted by MHA;
  
  
• Interstate bus transport except as permitted by MHA;
  
  
• Metro rail services;
  
  
• Interstate movement of individuals except for medical reasons or activities permitted by MHA;
  
  
• All educational institutions;
  
  
• Hospitality services other than those needed for frontline workers or stranded persons, or for quarantine;
  
  
• All cinema halls, shopping malls, gyms, sports complexes, swimming pools, assembly halls and similar places;
  
  
• All social, political and religious gatherings (please note that the annexure indicates that marriages and funerals can be held with limited participants and with social distancing);
  
  
• Religious places of worship will not be open to public and religious congregations remain prohibited.

The Order additionally imposes the following conditions irrespective of the zone:

Imposition of a curfew and prohibition of movement of individuals for non-essential activities from 7 pm to 7 am;

Condition that persons above 65 years of age, persons with co-morbidities, pregnant women and children below 10 years are required to stay at home, unless there is a health-related issue or to meet essential requirements;

Opening of outpatient departments and medical clinics (except in containment zones) is permitted with social distancing norms.

Activities in Red Zones

As per the Order, the following activities are permitted in the red zones (outside containment zones) with restrictions as imposed by the authorities:

• Movement of individuals and vehicles for permitted activities. Four wheelers will have a maximum of 2 passengers besides the vehicle driver and two wheelers will be permitted to ply with only one rider with no pillion.
  
  
• Industrial establishments in urban areas: only the following are permitted – SEZs, EOUs, industrial estates and industrial townships with access control; manufacturing units of essential goods including drugs, pharmaceuticals, medical devices, their raw materials and intermediates, production units which require continuous process and their supply chain, manufacturing of IT hardware, jute industry, manufacturing units of packaging material.
  
  
• All industrial activities permitted in rural areas.
  
  
• Construction in urban areas – only in situ construction and construction of renewable energy projects. All construction activities are permitted in rural areas.
  
  
• Shops selling essential goods in markets and market complexes permitted to be operational. All standalone shops permitted for both essential and non-essential goods.
  
  
• E-commerce activities will be permitted only for essential goods.
  
  
• Private offices can operate with 33% strength as per requirement, with remaining persons working from home.

The following activities are prohibited in red zones: Cycle rickshaws, auto rickshaws, taxis and cab aggregators, intra district and inter district buses, barber shops, spas and salons.

Activities in Orange Zones

As per the Order, inter district and intra district plying of buses will not be permitted in orange zones.

In orange zones, cabs and cab aggregators will be permitted to operate with one driver and two passengers. Inter district movement of individuals and vehicles will be permitted for permitted activities with four wheeler vehicles having a maximum two passengers besides the driver.

Activities in Green Zones

All activities will be permitted except those prohibited in all zones. Buses may operate with 50% seating and bus stations will be permitted to operate at 50% capacity.

The Order permits inter-state movement of goods/cargo, including empty trucks.

All other activities will be permitted, which are not specifically prohibited/permitted with restrictions in the various zones. However, the concerned State/Union Territories may allow only select activities from out of the permitted activities with restrictions as necessary based on their assessment of the situation.

The State/ Union Territories are not permitted to dilute the guidelines issued and are required to strictly enforce the same.

In addition to the standard operating procedures issued by the MHA earlier, Annexure I of the Order sets out certain directives which are required to be followed in public places and in workplaces for reducing the spread of COVID-19. Some of the directives are set out below:

• All persons are compulsorily required to wear face masks in public places and in all workplaces which are permitted to re-open their office premises.
  
  
• Employers are required to ensure that adequate supply of face masks is available to accommodate all employees and workers who are present in the workplace. Employers are required to ensure that social distancing as per the guidelines of the MHFW is strictly followed at all times at the workplace and in company transport. Employers may implement these norms by ensuring adequate gaps between shifts; and by staggering lunch breaks of staff.
  
  
• All areas in the premises of the workplace which come into human contact (ex. door handles) are required to be frequently sanitized/ disinfected.
  
  
• Employers are required to ensure that persons above 65 years of age, persons with co-morbidities, and pregnant women opt in for work from home policies and are not required to physically report to the workplace.
  
  
• Employers (public or private) are required to ensure that all employees and workers of their establishment are using the Arogya Setu app.
  
  
• Employers are required to avoid large physical meetings.
  
  
• A list of hospitals/ clinics in the vicinity of the workplace is required to be displayed at the workplace at all times. Any employee who is showing symptoms of COVID-19 is required to be immediately sent to such facilities for a medical check-up. Employers are required to earmark designated quarantine areas in the workplace for isolating employees who are showing symptoms of COVID-19 till they are safely moved to the medical facilities.
  
  
• Special transportation facility is required to be arranged for employees/ workers wherever the commute by personal/ public transport system is not feasible. Such special transportation facility is required to ensure compliance with the social distancing guidelines.
  
  
• Employers are required to take up intensive communication and training on good hygiene practices.

The Ministry of Home Affairs (MHA) vide order dated April 15 2020 ( Here) laid out the list of permitted activities allowed during the lockdown period and these have been amended from time to time. More recently, the MHA order on May 1, 2020 extended the lockdown for a period of two weeks with effect from May 4, 2020 and issued new guidelines based on risk profiling of the districts into Red (Hotspot) , Green and Orange Zones (MHA Order). It is to be noted that all activities that have not been expressly prohibited/permitted with restrictions in the various zones as under shall be considered as permitted activities.Enumerated below are the consolidated list of activities permitted as on May 5 2020.

I. Permitted Movement of Transport and Persons (Irrespective of the Zones)

1. Domestic and International Air Travel of passengers only for security purposes

2. Passenger movement by trains only for security purposes

3. Inter District and Inter State movement of individuals for medical reasons

4. Inter State buses for public transport, if permitted by the Ministry of Home Affairs

5. Sign on and Sign off of Indian Sea farers at Indian Ports and their movement for the aforesaid purposes under the Standard Operating Protocol (SOP)

6. Funerals[1], congregation of upto 20 persons and movements pertaining to the same.

7. Movement of individuals for all non essential activities except between 7pm to 7 am

8. All States/UTs shall allow inter-state movement of goods/cargo including empty trucks

9. No State/UT shall stop the movement of cargo for cross land border trade under Treaties with Neighboring countries

10. Due to lockdown, migrant workers, pilgrims, tourists, students and other persons are stranded at different places. They would be allowed to move as under:

• All States/ UTs should designate nodal authorities and develop standard protocols for receiving and sending and registering such stranded persons.
  
  
• In case a group of stranded persons wish to move between one State/ UT and another State/ UT, the sending and receiving States may consult each other and mutually agree to the movement by road. The moving person (s) would be screened and those found asymptomatic would be allowed to proceed.
  
  
• Buses shall be used for transport of groups of persons.
  
  
• The States/ UTs falling on the transit route will allow the passage of such persons to the receiving State/ UT. On arrival at their destination, such person(s) would be assessed by the local health authorities, and kept in home quarantine, unless the assessment requires keeping the person(s) in institutional quarantine.
  
  
• They would be kept under watch with periodic health check-ups.
  
  
• This facilitation is meant for such distressed persons who had moved from their native places/workplaces just before the lockdown period but could not return to their native places/workplaces on account of restrictions placed on movement of persons and vehicles as part of lockdown but does not extend to those categories of persons who are otherwise normally at places, other than native places for purposes of work, etc., and who wish to visit their native place in normal course.

II. Activities in Containment Zones

1. Movement of persons is allowed only for maintaining supply of goods and services and for medical emergencies
   
2. Out- Patient Departments and Medical Clinics shall not be permitted to operate.

III. Activities in Red Zone (Outside Containment Zones)

(a) List of Permitted Activities under Red Zone

1. Movement of individuals and vehicles for only for permitted activities. Four wheelers will have maximum two passengers besides the vehicle driver; for two wheelers, pillion rider is not allowed
   
2. Industrial Establishments in Urban Areas: Only Special Economic Zones (SEZs) , Export Oriented Units (EOUs), industrial estates and industrial townships, with access control. Manufacturing units of essential goods, including drugs, pharmaceuticals, medial devices, their raw material and intermediaries; Production Units, which require continuous process and their supply chain; Manufacturing of IT hardware, Jute industry with staggered shifts and social distancing and Manufacturing Units of packaging material are permitted . All industrial activities in rural areas are permitted
   
3. Construction Activities in urban areas: Only in site construction (where workers are available on site and no workers are required to be brought in from outside ) and construction of renewable energy projects are permitted. All construction activities in rural areas are permitted
   
4. All malls, market complexes and markets shall remain closed in urban areas i.e, areas within the limits of municipal corporations and municipalities. However, shops selling essential goods in markets and market complexes are permitted.
   
5. All standalone (single) shops, neighborhood (colony) shops and shops in residential complexes are permitted to remain open without any distinction of essential and non-essential . Social Distancing shall be maintained in all cases
   
6. E Commerce activities will be permitted only in respect of essential goods
   
7. Private offices can operate with up to 33% strength as per requirement, with the remaining persons working from home.
   
8. All Government offices shall function with officers of the level of Deputy Secretary and above the of 100% strength. The remaining staff will attend upto 33% as per requirement. However Defense and Security services, Health and Family Welfare, Police, Prisons, Home Guards, Civil defence, Fire and emergency services, Disaster management and related services, NIC, Customs, FCI, NCC, NYK and Municipal Services shall function without any restrictions; Delivery of public services shall be ensured and necessary staff will be deployed for such purpose.

(b) Exclusive prohibitions in Red Zone (Apart from common prohibitions)

1. Cycle rickshaws and auto rickshaws
2. Taxis and cab aggregators
3. Inter-District and Inter district plying of buses
4. Barber shops, spas and salons

IV. Activities in Orange Zone (outside containment zones)

(a) List of Permitted Activities

1. Taxis and Cab Aggregators are permitted, with 1 driver and 2 passengers only.
   
2. Inter-District movement of individuals and vehicles, only for permitted activities. Four Wheeler vehicles will have maximum two passengers besides the driver.

(b) Exclusive Prohibition in Orange Zone

1. Inter-district and intra-district plying of buses shall be prohibited in the orange zone

V. Activities in Green Zone

1. All activities are permitted in the Green Zone, except the general prohibitions.
   
2. Buses can operate with 50% seating capacity
   
3. Bus depots can operate with 50 % seating capacity

VI. The following Standard Operating protocols (SOP) will continue to operate

1. SOP on Transit arrangement for foreign national(s) in India and release of Quarantine Persons vide order dated April 02,2020 [Accessible Here]
   
2. SOP on movement of stranded labour within States/UTs issued vide order dated April 19, 2020 [Accessible Here]
   
3. SOP on sign on and sign-off Indian Sea farers, issued vide order dated April 21, 2020 [ Accessible Here]
   
4. SOP on movement of stranded migrant workers, pilgrims, tourists, students and other persons issued vide order dated April 29,2020 [Accessible Here]
   
5. SOP on movement of stranded migrant workers, pilgrims, tourists, students, and other persons by train issued vide order dated May 01,2020

[1] Gatherings such as marriages and funerals shall be regulated by the District Magistrate

Further to the MCA circular dated April 08, 2020 issued in relation to passing of special and ordinary resolutions by companies under the provisions of Companies Act, 2013, the MCA is in receipt of representations from various stakeholders. Representations indicate the difficulties faced by them in the present circumstances, in serving and receiving the notices/responses by post. Considering the same and to give more clarity in terms of holding of EGM’s during the Covid 19 related social distancing norms and the lockdown for the period as indicated in the April 08, 2020 circular, or till such further orders, whichever is earlier, MCA has issued following clarifications:

1. Considering the present circumstances, as per the provisions of rule 18 of the Companies (Management and Administration) Rules, 2014, the notice to the members may be given only via emails at the email id’s registered with the company or with the depository participant/depository.
   
2. Companies which are required to provide the facility of e-voting, are required to observe the following while publishing the public notice as per rule 20(4)(v) of the Companies (Management and Administration) Rules, 2014:

• A statement that the EGM has been convened through VC or OAVM;
  
• Date and time of the EGM;
  
• Availability of notice on the website of the company and the stock exchange;
  
• Manner in which the members holding physical shares and who have not registered their email id’s may cast their vote through remote e-voting or through the e-voting system during the meeting;
  
• The manner in which the members can register their email id’s with the company; and
  
• Any other detail considered necessary by the company.

3. Chairman of the company must make sure that the company has made all efforts feasible under the present circumstances to enable the members to participate and vote at the meeting.

4. Companies which are not required to provide e-voting facility are also allowed to give notice to the members only via emails at the email id’s registered with the company or with the depository participant/depository. In addition to this, such companies are required to observe the following:

• Upload the notice on the company website;
  
• Contact all the members whose email id’s are not registered with the company and inform them about the meeting and also request them to register their email id’s so that the company can send notice;
  
• In absence of contact details of the members, the company must give a public notice and include the details of the meetings and request the members to contact the company to register their contact details and email id with the company;

Please refer to the MCA circular no. 17/2020 dated April 13, 2020 for more details.

Further to the clarification issued by the Ministry of Corporate Affairs (MCA) on contributions to PM CARES fund as eligible CSR activity under item number viii of Schedule VII of Companies Act, 2013 the MCA has received several representations from various stakeholders seeking clarification on eligibility of CSR expenditure related to COVID-19 activities. As a consolidated response to all the representations, the MCA has released a set of FAQ’s along with clarifications for better understanding of the stakeholders on CSR expenditure related to COVID-19 activities.

Whether contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure?

MCA: Contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure under item no (viii) of Schedule VII of the Companies Act, 2013 and it has been further clarified vide office memorandum F. No. CSR-05/1/2020-CSR-MCA dated 28th March, 2020.

Whether contribution made to ‘Chief Minister’s Relief Funds’ or ‘State Relief Fund for COVID-19’ shall qualify as CSR expenditure?

MCA: ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19’ is not included in Schedule VII of the Companies Act, 2013 and therefore any contribution to such funds shall not qualify as admissible CSR expenditure.

Whether contribution made to State Disaster Management Authority shall qualify as CSR expenditure?

MCA: Contribution made to State Disaster Management Authority to combat COVID-19 shall qualify as CSR expenditure under item no (xii) of Schedule VII of the 2013 and clarified vide general circular No. 10/2020 dated 23rd March, 2020.

Whether spending of CSR funds for COVID-19 related activities shall qualify as CSR expenditure?

MCA: Ministry vide general circular No. 10/2020 dated 23rd March, 2020 has clarified that spending CSR funds for COVID-19 related activities shall qualify as CSR expenditure. It is further clarified that funds may be spent for various activities related to COVID-19 under items nos. (i) and (xii) of circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad based and may be interpreted liberally for this purpose.

Whether payment of salary/wages to employees and workers, including contract labour, during the lockdown period can be adjusted against the CSR expenditure of the companies?

MCA: Payment of salary/ wages in normal circumstances is a contractual and statutory obligation of the company. Similarly, payment of salary/ wages to employees and workers even during the lockdown period is a moral obligation of the employers, as they have no alternative source of employment or livelihood during this period. Thus, payment of salary/ wages to employees and workers during the lockdown period (including imposition of other social distancing requirements) shall not qualify as admissible CSR expenditure.

Whether payment of wages made to casual /daily wage workers during the lockdown period can be adjusted against the CSR expenditure of the companies?

MCA: Payment of wages to temporary or casual or daily wage workers during the lockdown period is part of the moral/ humanitarian/ contractual obligations of the company and is applicable to all companies irrespective of whether they have any legal obligation for CSR contribution under section 135 of the Companies Act 2013. Hence, payment of wages to temporary or casual or daily wage workers during the lockdown period shall not count towards CSR expenditure.

Whether payment of ex-gratia to temporary /casual /daily wage workers shall qualify as CSR expenditure?

MCA: If any ex-gratia payment is made to temporary / casual workers/ daily wage workers over and above the disbursement of wages, specifically for the purpose of fighting COVID 19, the same shall be admissible towards CSR expenditure as a onetime exception provided there is an explicit declaration to that effect by the Board of the company, which is duly certified by the statutory auditor.